The impact of COVID-19 pandemic on bank lending around the world

Gonul Colak, Özde Öztekin*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

104 Citations (Scopus)


We evaluate the influence of the pandemic on global bank lending and identify bank and country characteristics that amplify or weaken the effect of the disease outbreak on bank credit. Using a sample of banks from 125 countries, we apply a difference-in-difference methodology and find that bank lending is weaker in countries that are more affected by the health crisis. This effect depends on the bank's financial conditions, market structure, regulatory and institutional environment, financial intermediary and debt market development, ease of access of corporate firms to debt capital, and the response of the public health sector to the crisis.
Original languageEnglish
Article number106207
Peer-reviewed scientific journalJournal of Banking & Finance
Number of pages24
Publication statusPublished - 01.12.2021
MoE publication typeA1 Journal article - refereed


  • 511 Economics
  • bank loans
  • credit supply
  • COVID-19
  • difference-in-difference method
  • entropy balancing

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoS: Financial management, accounting, and governance


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